Tallest building and the China bubble

The Chinese economy is on fire, with some calling it healthy growth and some calling it a bubble,  particularly in the Real Estate market where a building boom has coincided with rapidly rising prices.  Property prices in Beijing are now higher than in Dubai, despite the latter having a higher per capita income.  So when it comes to China and its relation to the global economy are we talking ‘Noahs Ark’ or ‘Titanic’?

Speaking of Dubai, here’s a dubious but interesting theory: The Skyscraper Index proposes that the nation with the worlds tallest building suffers an economic downturn sometime around its opening.  The worlds tallest building is now opening in Dubai, where some property values have dropped in half over the last year as their debt ridden economy falters.  Previous record breaking buildings have been the Empire State Building (US Great Depression), Sears Tower (70’s stagflation) and the Petronas tower in Kuala Lumpur (East Asian global financial crisis).

The next record breaking building is set to be the Shanghai Tower which is scheduled to open in 2014.

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tempiegodd
10 years ago
reveneuba
10 years ago
simondomi
10 years ago

hey mates

Sorry if I look demanding in my first post, I am Simone, I used to work for a a property company and now I am starting my career to make something for myself, I have made my first website ever, please check it out : http://dubaipropertyblog.com

can you please suggest me how it looks ? and I also want to know as the property is down in dubai due to global recession, should I go for a blog or a forum on this domain ?

I appreciate and thank for your time and help..

cheers

Patsan
Patsan
10 years ago

Hope Dubai got a 2-5-10 insurance on their erection. Let's wait until maintenance bills come…

oneangryslav2
oneangryslav2
10 years ago

The Emirate of Dubai is going to be spending a hell of a lot of its money in the future on Viagra and Cialis. It takes a hell of a lot of product to get that thing erect.

bestplaceonmeth
bestplaceonmeth
10 years ago

Congratulations Dubai.

You now have the biggest erection in the world.

The Chinese will soon try to get a bigger one, but will predictably fail.

logic
logic
10 years ago

indeed. the rise in property tax is due to the Olympic disaster (in terms of financing) rather than to the housing bubble…

Not much of a name
Not much of a name
10 years ago

@blueskies:

Increasing assessments do not directly mean increasing taxes. Assessments are used to calculate how much of the civic "tax pie" one is required to pay.

blueskies
blueskies
10 years ago

Greater Victoria property assessments up $89 billion for 2010….sez the headline

the article states:

"an increase of nearly $4 billion from the previous year, according to B.C. Assessment Authority."

and…. "This assessment roll will be used to raise over $6 billion in property taxes in 2010."

http://tinyurl.com/yfqq6gw

what?! you mean i actually have to pay taxes on this?!

it's not fair!!!

Classic Envy
Classic Envy
10 years ago

Sorry – the quest for pursue the biggest everything in Dubai (building, indoor mall, airport, etc) is classic Western penis envy. For a land of sand, where only 15% of the population are actually Emirates, the infrastructure quests of this minor city state speak of their insecurity on a grandiose scale.

If you have ever been there, and conducted business there, you will know what I speak of…

rp
rp
10 years ago

#3 @nonymouse: Geez, I hope they don't see this story:

http://www.nytimes.com/2010/01/02/business/global/02caps...

rp
rp
10 years ago

Congratulations are in order for Dubai. The worlds tallest structure is a serious technical feat, and it has put Dubai on the map as a future world city. The fact that they didn't even pay for it is also impressive. Truly they have learned from the west.

Anonymous
Anonymous
10 years ago

It is extremely difficult to take many of the statistics coming out of China at face value. When real estate prices in the major cities doubles and triples in one year it doesn't take a genius to see that something is awry. Real estate prices are now out of reach for 90% of the people living in the cities. The Chinese stock market has also seen some of the same ridiculous growth.

There is a parallel with Canada in the sense that all of the manufacturing headed for western nations has tanked and yet many economic statistics continue to move ahead. It just doesn't make sense. A Chinese bubble popping would be particularly devastating to their country and they would finally start feeling some of the pain that the rest of the world has seen.

nonymouse
nonymouse
10 years ago

In other news.

Upon hearing about the sky scraper index Vancouver mayor Gregor Robertson proposes building worlds first underground skyscraper. " The obvious way to eco-denstiy isn't to build up it's to build down, taking advantage of both geothermal energy and a closer proximity to the important Chinese market" said the mayor.

Mr. Reasonable
Mr. Reasonable
10 years ago

RE: The Skyscraper Index. I guess it's a good thing we didn't build the Shangri-La taller or we might have a bubble problem here!

😀

arit
10 years ago

Hi Pope,

I have mailed you some material, I do not know if you check the GMail account often…

Regards

arit